June 15, 2018 / 11:17 AM / 9 months ago

Kazakhstan to settle government bonds through Clearstream from this month

ALMATY, June 15 (Reuters) - Kazakhstan plans to start clearing its government bonds and central bank notes through the international system Clearstream this month to make them more attractive to foreign investors.

Kazakhstan’s central bank said in a statement on Friday that the plan was going through final tests with Clearstream, which is owned by German stock market operator Deutsche Boerse .

According to central bank data, foreign investors held 444 billion tenge ($1.3 billion), or 10.2 percent of the bank’s outstanding short-term notes as of May 1.

Making government and central bank securities more easily available to foreign investors through clearing systems such as Clearstream and Euroclear - with which Kazakhstan is also working to start operations - could lower the cost of borrowing for the government of the former Soviet republic.

The potential inflow of foreign money could also support the Kazakh tenge which hit an eight-month low this week, as the U.S. Federal Reserve’s rate hike hurt most emerging market currencies. (Reporting by Olzhas Auyezov; Editing by Susan Fenton)

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